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Explain the differences and similarities between Neoclassical Growth and New Keynesian models based on:
1. Economic Actors
2. Assumption of Market Type
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- Explain the differences and similarities between Neoclassical Growth and New Keynesian models based on:3. Price Nature4. Production function usedDiscuss the three pillars of the neoclassical economy. How are they linked? Describe in terms of the dynamics of the system. Why did Veblen give special importance to engineers in society?What, using examples, are the main contrasts between the Keynesian and Neoclassical approaches?
- What are the principal differences between the Neoclassical and Keynesian approaches with examplesOne practical limitation of the Classical or Neoclassical model is that it suggests allowing the economy to self-correct in the long run, but recessions may last a very long time. How severe is this problem and why? What is one example?Why does neoclassical economics emphasize growth?
- Review the fundamental microeconomic assumptions on the consumers’ behaviour within the neoclassical model. What are the main strengths and the main limitations of those assumptions? Discuss with theoretical and applied evidence.In what way is neoclassical economics different from old and new institutional economics? Which school of thought is founded on principles that are closer to reality?Macroeconomics: Regarding Neoclassical Economic Theory: Question: Which type of interventions, if any, are best for the economy? Can you explain your reasoning behind that answer please?
- True or false question: Although there is no specific founder of macroeconomics, John Maynard Keynes is usually cited as such.The primary goal of effective macroeconomic policies is/ are ......................................... Select one: A. Enhances prospects for growth and improved living standards B. To reduce uncertainty and risk in economic decision-making C. Have an impact on how income is distributed across economic classes D. All of the given optionsWhy would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?